MAG Airports Contribution to the UK Economy Rises 16% to £6.2bn

Published on : Tuesday, October 25, 2016

Figures in MAG’s (Manchester Airports Group) Corporate Social Responsibility Report for 2015/16 show that the Group delivered £6.2bn of economic value for the UK economy and for the communities in which its four UK airports operate.

This 16% increase comes on the back of MAG’s most successful year ever which culminated in nearly 52 million passengers using its Manchester; London Stansted, East Midlands and Bournemouth airports.

Despite the passenger growth during the period, MAG’s airports delivered a significant reduction in their environmental impact, most notably through a 15% reduction in carbon emissions and a 41% cut in the number of registered noise complaints. Across the four sites, there were also no recorded breaches of air quality limits, set by the Civil Aviation Authority (CAA) and the Group also won the ‘Best Community Project’ at the National CSR award for its GPS technology flight path trial at London Stansted.

In addition, the report details how in 2015 the Group’s operations supported the employment of 124,000 people across the UK and how the work of its three airport employment academies, Aerozone education centres and over 10,000 hours of staff volunteering, contributed to the education of over 20,000 young people.

MAG’s annual CSR report also demonstrates the wide and varied benefits of the Group’s airports, including the positive financial impact on the communities they serve and their contribution to local skills, education and labour markets, as well as the efforts they make to reduce environmental impacts such as carbon emissions and noise.

Economic contribution to the UK and its regions
In the last financial year, MAG’s airports across the UK, at Manchester, London Stansted, East Midlands and Bournemouth, contributed £6.2 billion in economic activity to UK PLC. This means that for every £1 the Group earned in revenue, economic activity worth another £8 is generated in the wider economy as a result.

Passenger growth across the Group of 7% and substantial investment in facilities at the Group’s airports has resulted in more jobs and economic opportunities at and around each airport. The main drivers behind the expanded ‘economic footprint’ of the airports include a higher number of employment opportunities and the associated economic value generated by their operations, including passenger and cargo flights and airport services. The benefits also include jobs and revenue generated in the airports’ direct supply chains.

Long-term commercial agreements with airlines have generated market-leading increases in passenger numbers across the Group, (+7% to 52m in 2015), driven by record numbers at Manchester Airport (+5.4% to 23.5m in 2015) and unrivalled growth at London Stansted Airport (+11% to 23.2m in 2015).

Together, over 39,000 people now work for a range of different employers at MAG’s airports across the UK, contributing £3.4 billion at a local level to their regional economies. Taking into account jobs in the supply chain and those supported by the wages earned in relation to the airports, this figure increases to 124,000 across the UK (+2.5% 2015 v 2014).

Individual airports’ contributions include:
Manchester Airport, currently delivering record passenger numbers, contributes £1.9bn each year to the North West’s economy, up 28% since 2013 driven by a growth in new routes and long haul traffic. At a national level, it contributes £3.2bn to the economy and supports 48,200 jobs locally. For every pound that the airport earns in revenue from its operations, its wider activities contribute £4.70 back to the local economy.

Stansted Airport, the fastest growing airport in the UK, contributes £1.2bn each year to the Eastern economy and supports over 20,000 jobs. Nationally, it contributes over £2bn to the economy, with every £1 in revenue generated contributing £4.30 back into the local economy.

Together, East Midlands Airport and Bournemouth Airport contribute £330m to their local regions. East Midlands supports over 9,000 jobs and Bournemouth supports 850. Nationally, they contribute over £700m to UK PLC. For every pound that East Midlands Airport earns in revenue, it contributes £5 back into the local economy. At Bournemouth the figure is £2.65.

Education and training
MAG takes a strategic approach to developing the skills of its future workforce, working with local young people so they can capitalise on the opportunities offered at its airports. In the last year, this approach has seen the education of over 20,000 young people directly supported by MAG through its Aerozones, airport academies and other forms of community engagement.

MAG has two Aerozones in operation, one at London Stansted and East Midlands airports, with these on-site education centres catering for young people between the ages of 5-18. The Aerozones aim to boost skills in STEM subjects and show visitors the wide range of exciting careers aviation has to offer.

MAG has developed specialist employment and skills academies at its three largest airports. They specialise in ‘on-airport’ employment and aim to provide support services to individuals wanting to get into work at the airport. In the past year, nearly 1,000 people have gained work at our airport sites through our academies.

Environmental impact
At a time when MAG is continuing to deliver record growth and investment across its four UK airports, the Group has also managed to deliver a significant reduction in its environmental impact.

At the same time as passenger numbers across the Group increased by 7% to 52 million, investment in energy efficiency has reduced carbon emissions from the airports by a further 15% year on year. This follows a 16% reduction in 2014.

None of the Group’s four airports breached air quality limits during the 12 month period.

10 years ago MAG committed to achieving carbon neutrality at Manchester Airport and this was finally delivered in 2015 by introducing low energy technology and rethinking the way buildings are operated to remove unnecessary energy use.

Complaints about aircraft noise are down 41%, helped by a continued focus on improved operating techniques. In addition, London Stansted began trialling innovative GPS technology during take-off, which helps pilots follow a defined route much more accurately, thereby concentrating planes over a smaller area and reducing the number of people exposed to aircraft noise. Earlier this year this project won the ‘Best Community Project’ category at the National CSR awards.

The numbers of passengers using public transport to access the Group’s airports are also at record levels. MAG has invested in Manchester’s Metrolink to provide an extension to Manchester’s light rail network to the airport.

Stansted Airport, meanwhile remains the number one major airport in the UK for public transport use with over 51% of air passengers using rail, bus and coach services to access the airport.

Neil Robinson, CSR Director at M.A.G, said: “MAG’s approach is guided by our belief that when our business prospers, the regions and communities in which we operate prosper.

“We also know that delivering growth in the right way is key to securing the support of our stakeholders and as our airports continue to grow over the coming years, we recognise the importance to local communities of being able to deliver this growth without increasing the environmental impacts associated with our operations.

“The figures we are releasing today demonstrate the powerful role that airports across the country play in generating wider social and economic benefit for their local communities and the UK economy.

“In a year when we have transported a record 50 million passengers, we have managed to significantly reduce our environmental impact through a variety of initiatives such as the introduction of GPS flight path technology that has cut our noise impact and also managing to make Manchester Airport’s ground operations carbon neutral.

“As the North’s Global Gateway, Manchester Airport will do more than any other UK airport to drive the Northern economy forward, providing international connectivity directly from the region.

“Similarly, Stansted’s growth over the next ten to fifteen years will not only provide much-needed airport capacity in the South, it will also play a key role in supporting economic development and employment in London and the East of England.”